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Filing a Change in Status (When, What & Why)


When to File
The Commission has identified the types of changes a seller is required to report in 18 C.F.R. § 35.42. Specifically, section 35.42 states the following:

Sec. 35.42 Change in status reporting requirement.

    (a) As a condition of obtaining and retaining market-based rate authority, a Seller must timely report to the Commission any change in status that would reflect a departure from the characteristics the Commission relied upon in granting market-based rate authority. A change in status includes, but is not limited to, the following:
      (1) Ownership or control of generation capacity that results in net increases of 100 MW or more, or of inputs to electric power production, or ownership, operation or control of transmission facilities, or
      (2) Affiliation with any entity not disclosed in the application for market-based rate authority that owns or controls generation facilities or inputs to electric power production, affiliation with any entity not disclosed in the application for market-based rate authority that owns, operates or controls transmission facilities, or affiliation with any entity that has a franchised service area.

This means that a seller must make a filing when it or its affiliates acquire generation causing a net increase of 100 MWs or more. Additionally, a seller must file if it becomes an owner, subsidiary, or affiliate of another company which is engaged in any way in the energy industry. Finally, a seller must file a change in status in any instance where the facts that the Commission relied upon in granting that seller its market-based rate authority change.

When Not to File
There are instances when a seller does not need to make a change in status filing. For instance, a seller does not need to make a filing if its address changes, when it divests generation, when long-term contracts it was receiving power under expire, when it becomes affiliated with an entity not in the energy industry or with generation not in the U.S. or a first tier balancing authority area to the U.S.

Also, it is important to note that the Commission has not and will not differentiate between a material and non-material changes in status. If the seller has not had a triggering event which required it to submit a Notice of Change in Status the Commission will either ask the seller to withdraw its filing, or will treat the submittal as a material change in status.

What to File
If a seller does decide to make a change in status filing it is also important to understand what is required and allowed to be submitted.

If a seller is notifying the Commission of an increase in generation it has the opportunity to submit the indicative screens to show that it continues to meet the Commission’s requirements regarding horizontal market power.

If a seller is notifying the Commission about a change regarding new affiliation, it should also submit an organization chart showing the new corporate family.

If a seller is submitting a change in status notification regarding a change that impacts the pertinent assets held by a seller or its affiliates with market-based rate authorization, a seller must include an updated appendix of assets.


CONTACT
Technical
Virginia Castro, OEMR
Telephone: 202-502-8491
Email: virginia.castro@ferc.gov

Legal
Carol Johnson, OGC
Telephone: 202-502-8521
Email: carol.johnson@ferc.gov
 
MBR


Updated: November 18, 2014